Radio Shack 2003 Annual Report Download - page 53

RADIOSHACK 2003 Annual Report 51
Restricted Stock: We may also use restricted stock grants to
compensate certain of our employees. As of December 31,
2003, no shares of restricted stock were outstanding.
Compensation expense related to restricted shares is
recognized ratably over the related service period.This
expense totaled $0.7 million for the year ended December 31,
2001. There was no expense for the years ended
December 31, 2003 and 2002.
In 1998, the Committee granted a total of 172,000 shares of
restricted stock awards to three executive officers. Of
these awards, 100,000 shares vested ratably over three years
and were fully vested in 2001.The remaining 72,000 shares
vested in 1999. In 1999, the Committee granted 10,000
shares of restricted stock awards to two executive officers.
These awards were to vest ratably over three years; 4,000 of
these awards were canceled in 2000. At December 31, 2001,
all of the 1999 shares granted had either vested or been
canceled.In 2000, the Committee granted a total of 66,712
shares of restricted stock awards to 38 executive officers
and these awards vested ratably over three years, subject to
the achievement of certain performance targets each year.
At December 31, 2003, none of these shares granted in 2000
remained outstanding.No restricted awards were granted in
2001, 2002 or 2003.
Note 19 Deferred Compensation Plans
The Executive Deferred Compensation Plan and the Executive
Deferred Stock Plan (“Compensation Plans”) became
effective on April 1, 1998.These plans permit employees
who are corporate or division officers to defer up to 80% of
their base salary and/or bonuses. Certain executive officers
may defer up to 100% of their base salary and/or bonuses.
In addition, officers are permitted to defer delivery of any
restricted stock or stock acquired under an NQ exercise that
would otherwise vest. Cash deferrals may be made in our
common stock or mutual funds; however, restricted stock
deferrals and deferrals of stock acquired under an NQ exer-
cise may only be made in our common stock.We match
12% of salary and bonus deferrals in the form of our
common stock.We will match an additional 25% of salary
and bonus deferrals if the deferral period exceeds five years
and the deferrals are invested in our common stock.
Payment of deferrals will be made in cash or our common
stock in accordance with the employee’s specifications
at the time of the deferral; payments to the employee will
be in a lump sum or in annual installments not to exceed
20 years.
We contributed $0.4 million, $0.5 million and $1.4 million to
the Compensation Plans for the years ended December 31,
2003, 2002 and 2001, respectively.
Note 20 Termination Protection Plans
In August 1990 and in May 1995, our Board of Directors
approved termination protection plans and amendments
to the termination protection plans, respectively.These
plans provide for defined termination benefits to be paid to
our eligible employees who have been terminated, with-
out cause, following a change in control of our company. In
addition, for a certain period of time following an
employee’s termination, we, at our expense, must continue
to provide on behalf of the terminated employee certain
employment benefits. In general, during the twelve months
following a change in control, we may not terminate or
change existing employee benefit plans in any way which
would affect accrued benefits or decrease the rate of our
contribution to the plans.There have been no payments
under these protection plans for the years shown.
Note 21 Company Stock Purchase Plan
Eligible employees may contribute 1% to 7% of their
annual compensation to purchase our common stock at
the monthly average daily closing price.We match 40%,
60% or 80% of the employee’s contribution, depending on
the employee’s length of continuous participation in the
Stock Purchase Plan. This match is also in the form of our
common stock. Company contributions to the Stock Plan
amounted to $15.4 million, $15.1 million and $15.4 million
for the years ended December 31, 2003, 2002 and 2001,
respectively.
Note 22 RadioShack 401(k) Plan
The RadioShack 401(k) Plan (“Plan”) is a defined contri-
bution plan. Eligible employees may direct their contributions
into various investment options, including investing
in our common stock. Participants may defer, via payroll
deductions, 1% to 8% of their annual compensation.
Contributions per participant are limited to certain annual
maximums permitted by the Internal Revenue Code. Any
contributions made by us are discretionary and, if made, go